Current Attempt in Progress Blossom Corporation entered into an agreement to lease out a piece of equipment to a customer. The details of the lease are as follows: . . Equipment cost of $105,800 Lease term of 8 years Guaranteed residual value of $9,000 Annual payments on the lease would be due at the beginning of each year. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. In order to earn a 4% return, what minimum lease payments should Blossom charge its customer for this equipment lease? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Minimum lease payment $ +A
Current Attempt in Progress Blossom Corporation entered into an agreement to lease out a piece of equipment to a customer. The details of the lease are as follows: . . Equipment cost of $105,800 Lease term of 8 years Guaranteed residual value of $9,000 Annual payments on the lease would be due at the beginning of each year. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. In order to earn a 4% return, what minimum lease payments should Blossom charge its customer for this equipment lease? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Minimum lease payment $ +A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Blossom Corporation entered into an agreement to lease out a piece of equipment to a customer. The details of the lease are as
follows:
Equipment cost of $105,800
Lease term of 8 years
Guaranteed residual value of $9,000
Annual payments on the lease would be due at the beginning of each year.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.
In order to earn a 4% return, what minimum lease payments should Blossom charge its customer for this equipment lease? (Round
factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.)
Minimum lease payment
$
+A
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